What is an Independent Contractor?

An independent contractor (IC) is a person who contracts to perform services for others without having the legal status of an employee. Most people who qualify as independent contractors follow their own trade, business or profession -- that is, they are in business for themselves. This is why they are called "independent" contractors. They earn their livelihoods from their own independent businesses instead of depending upon an employer to earn a living. Good examples of independent contractors are professionals with their own practices such as doctors, lawyers, dentists and accountants. However, any person who is in business for himself or herself qualifies as an independent contractor. While independent contracting is common in highly specialized or technical fields such as computer programming, engineering or accounting, there is hardly any job that independent contractors don't perform.